DEEMED CONVEYANCE

ABOUT DEEMED CONVEYANCE

To have future benefits attached with the land like additional FSI, Development rights etc. the builders delay the Conveyance of land and building in favour of the Societies and sometimes with the ignorance of the proper procedure and legal remedies the office bearers also delay in taking appropriate legal actions to have early conveyance and proper title of the property for which the full and final payments have been made. There are legal remedies provided in Maharashtra Ownership Flats Act, 1963(MOFA)  to get the conveyance of land and building such as filing a case in the consumer court, civil court or criminal court. Since the litigation was taking more time, on the representations received from many societies, the Government has made a provision of deemed conveyance and accordingly amended the MOFA and also framed the requires rules to give effect to the provisions of deemed conveyance.


ACT TO REGULATE OWNERSHIP OF FLATS

MOFA provided for statutory rights to the flat purchasers like the Agreement for sale has to be registered on payment of 20% advance for flat booking, Occupation certificate to be provided after completing all the legal formalities, societies /company / condominium to be formed within 4 months of sale of minimum flats required to register the same and then convey the land and building to legal body within 4 months of  its formation.  In case the above statutory obligations are not made by the builder, he will be considered to have committed criminal offence and he may be prosecuted and remedies can be done including the deemed conveyance procedure.


ADVANTAGES OF CONVEYANCE


  • Getting the proper title
  • Retaining Additional F.S.I which has been granted by change of regulations.
  • Property will be free and marketable from any encumbrances / charges
  • Loan can be raised by Mortgage for repairing of the buildings.
  • Permission for reconstruction will be given by the planning authorities.
  • Construct new building by using TDR or give the redevelopment rights to the builder and get the

   additional  area & the corpus with new amenities.



  • Receive Compensation on Development like Hoarding rents, tele communication  tower rent etc.


DEEMED CONVEYANCE

The government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) and provided for the deemed conveyance in favour of the legal bodies. Under the provision, deemed conveyance means after the expiry of 4 months of formation of the legal body, the land and building is deemed to have been conveyed to the legal body. In order to bring the name of the society/legal body in the revenue record, a Competent Authority has been designated i.e District Deputy Registrar, who will hear the parties on the basis of applications received from the aggrieved party and decide the matter. In case the Competent Authority is satisfied that the society/legal body is entitled to get the conveyance of land and building, an appropriate order in favour of the society/legal body will be passed. After getting the favourable order from the Competent Authority, the society/legal body should prepare an unilateral conveyance deed along with deemed conveyance order and get the same registered with the sub-registrar of assurance after paying appropriate stamp duty.  Getting the title of land and building by adopting the above procedure is known as deemed conveyance.


DEEMED AND REGULAR CONVEYANCE

In case of regular conveyance, the builder/ Developer/ Landowner prepares a conveyance deed, execute the same and appear before the Sub-Registrar of assurance for admitting their signature. Without any problem, the legal bodies get the conveyance with the co-operation of the builder/ landowner. In case of deemed conveyance, the builder/ land owner or their legal heirs are not co-operating, therefore, the aggrieved parties appear before the Designated Competent Authority, who hears all the parties and passes the necessary order of conveyance.  Deemed Conveyance is obtained as a legal remedy against the defaulter builder/ landowner who do not want to part with the land and the building in favour of the society.

​PROCEDURE AND THE APPEAL PROVISION​

Deemed Conveyance is a one of the legal process to get the conveyance of land and building in favour of the legal bodies. Once the Deemed conveyance is passed by the Competent Authority, unilateral conveyance deed as provided in MOFA will be executed by the society/legal body as per the order received from the competent Authority.  And the Competent Authority shall execute the conveyance deed on behalf of Builder and land owner and then communicate to the Sub-Registrar to register the conveyance deed without his presence. Further, the same will be registered by paying appropriate stamp duty and registration charges. There is no appeal against the deemed conveyance order passed by the competent Authority.  However, the aggrieved parties can file a writ petition in the High court or in the supreme court under Article 226 of the constitution.  Once the deemed conveyance order with Unilateral conveyance deed is executed, the index II has to be obtained and submitted to the Talati office or City Survey office to incorporate the name of the legal body in the 7/12 extracts or in the property card as the case may be.


PROCEDURE FOR GETTING DEEMED CONVEYANCE ORDER

Normally, the aggrieved party has to make the application to the competent Authority in the prescribed form with documents available against the builder, if he fails to convey the land and building to the legal body within 4 months of its formation.  The Competent Authority shall scrutinize the application, collect the documents from the promoter/ builder or from the authorised officer appointed by him and get the application admitted. After the admission of the application, the competent Authority shall conduct the hearing and then take the appropriate decision, whether the applicant or the legal body is a fit case for granting the deemed conveyance. If he passes a favourable order, then he appoints an authorised officer, who shall execute the conveyance deed.


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He is a Chartered Account Practicing for the last 2 decades. He was a Member of Deemed Conveyance Committee of Govt. Of Maharashtra Represented before the joint Committee for Making Changes in the Maharashtra Housing Act 2012

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